Smash Notes
What Drives Trade and Specialization
at 14:54
Answer
Diversity. Trade takes our differences and encourages us to cooperate for a common good. One can get better at doing a certain task, or producing a good, and thus trade it with someone else, who is better at something else. Even if all of us are the same at everything, with addition of technology, it still makes sense to divide tasks between specialists, and to trade.
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